Relationship between Human Capital and Organizational Performance: Empirical Evidence from Manufacturing Sector of Pakistan

Abstract:

Since 2004, Pakistan has focused on manufacturing sector to attain a sustainable economic growth. However, the survival is being difficult (Khalique, Isa, Sharri, & Abdul 2011). According to United National Industrial Development Organization [UNIDO] (2014) the productivity level in major industries e.g. textile is facing downward trend .  In the same way the experts of human capital considers lack of human capital capabilities is a major factor of  the performance challenges (Marr, Gray, & Neely, 2003). In Pakistan, there is lack of researches finding critical role of human capital especially in manufacturing concerns. There need to be found out the major elements of human capital in manufacturing concerns. Hence, there is a clear indication of finding the impact of human capital dimension on firm performance. The research aim to examine the level of HC in textile sector of Pakistan and to find out the relationship between HC Dimensions and firm’s performance dimensions.